Sai Sharma began his career working for a local business as a customer service agent, but the seeds for his future plans were already blooming. In his spare time, Sai worked for a newspaper writing reviews of cricket matches involving nearby teams; initially just a hobby, he soon began to wonder if it might be possible to combine his love of writing and sports into a full-time career.
After retraining, Sai started writing professionally in 2015, building on his newspaper contracts and also starting to write copy for the web. During this period, he learnt the ins and outs of the sport betting world, and eventually turned his talents to writing betting guides as well as reporting on sports stories. Promoted to editor of a popular sports blog in 2018, he continued writing and honing his craft until 2020, when he joined Betastic as Editor-in-Chief. He now specialises in writing guides, news, and betting tips for the site, as well as commissioning and editing work from other writers.
While he has moved multiple times for work in the past, Sai now works from his home office in Chennai, and any time away from his desk is usually spent watching cricket and Premier League football.
Ever Wondered How Bookmakers Make Money?
You may be interested in gambling on sports or in a casino. But one thing might trouble you – how bookmakers make money. After all, you don’t want to be supporting something bad. Don’t worry; it’s sort of the same way other business people make money. Of course, every bookmaker is different but the ways they make money are pretty simple to understand.
We’ll show you exactly how bookmakers make money and explain why it’s mostly not bad. (There is one bad way bookmakers make money, but we’ll explain how to avoid that.) Are you ready to learn more? Then read on!
We also have other guides that can help you increase your odds of winning and help you keep your losses to a minimum. We even have a cash out betting guide that makes this very easy to do once you understand what you are trying to accomplish.
Main Points Covered in This Info Packed Article
Bookmakers profit by setting the odds slightly in their favor
On video slot machines there is a return to player ratio of 95-97%
Some shady online casinos and bookmakers charge fees for deposits and withdrawals
The odds are always slightly set in the bookmakers favor even on games like blackjack
If you use the right strategies you can make sure the bookmakers make less money
A Quick Look at the Art & Science of Setting Odds
Setting Odds On Sports Matches That End Up In Their Favor
Bookmakers are all about odds; that’s how bookmakers make money. They have people who study all aspects of the game and the games before it. This allows them to understand what the real odds for the game should be. Once they know what the real odds are, they then adjust them when they post them online. So, if the real odds should be 3.2 to 1, they make them 3 to 1. That gives them a few points in their favor.
So as the game is played even if they have to pay out they still make a couple of percentage points per game. And they do this on the other end as well. If the odds of your team winning are 1.2 to 1, they will make the odds 1 to 1. This – with a few rare exceptions that break the odds – is how bookmakers make money off of every game, even if they have to pay out a lot of money on easy wins for players.
If you want to design your bets, we can help you find the best betting exchanges. They allow you to set the odds you want to get and if people want to take those odds then your bet is on and you can see who wins and who loses.
Should you want to take the risk out of betting we have a guide to no risk matched betting in India. This includes methods that make it guaranteed you win on each bet you make and never put your own money at risk.
With Video Slot Machines The Odds Are Built Into The Games
When it comes to video slot machines how bookmakers make money is entirely a part of the game. If you go to any video slot machine and click around a bit, you’ll discover its return to player ratio. This is how much money goes back to the players versus how much is kept by the casino. On the low end, you have machines with a 95% return to player ratio. That means the casino over time ends up keeping 5%. One the high end there are machines with a 98% return to player ratio. That means that over time the bookmaker ends up keeping 2% of what’s bet on the machine, which is yet another way how bookmakers make money. You can always look up the return to player ratio and pick a machine with a higher payout to players.
When You Look At Roulette It’s All About The Zeroes
Roulette has the most obvious and subtle way to make sure the house wins money – the zero or zeroes. When you make a bet on roulette you are generally betting on red or black or on roughly a third of the board. When you bet red or black you win 2 to 1. When you bet a third of the board you win 3 to 1. But the zero or zeroes don’t count on either of those bets. Therefore, the house gets a small edge simply by putting those zeros on the board. The edge over time is enough to explain how bookmakers make money. It may not seem like much but it’s big business for them.
If you are more advanced, we have a guide that will explain to you what is Asian handicap betting. It will take you step-by-step through everything you need to know about Asian handicap betting before you make your first wager. It’s an essential go-to if you want to win.
Blackjack is a game that is as weighted to the player as you can get. In general terms, the house has a 1% advantage over the player. That means that the player wins 49% of the time. And if you use some basic blackjack strategy you can lower the house odds to less than a .5% advantage. Still over time that’s enough to put money into the pockets of the casinos. And not every player plays well. Some play so badly that the casino gets a 5% advantage from them. All in all, this adds up to serious money for the bookmakers and is another example of how bookmakers make money.
Video Poker Machines Function Exactly Like Video Slot Machines
When it comes to video poker, you are also dealing with a return to player ratio. That said the return to player ratio will come in a range instead of as a set number. That’s because players can choose to use skill to determine if they will win or not. Or they can just play fairly randomly. Since both options have to be considered you’ll end up with a range of 95% to 97% listed as their return to player ratio. That still means the house is winning over the long term which is how bookmakers make money.
Texas Hold ‘Em Is All About The Buy-In
Texas Hold’ Em may seem like a way that the house can’t make any money. After all, you are betting against other players, not the house itself. But you’d be wrong. In Texas Hold ‘Em tournaments it’s all about the buy-in fee, because everyone has to buy-in before they compete to get the big prize by being the last person in the game with chips to play. But if you add up all the money of the buy-ins, you’ll find that they are significantly more money than the eventual prize. So, the house keeps that money and it is how bookmakers make money off our poker tournaments.
Our team can also teach you about poker. We’ll explain how five-card draw works – that’s the game on most video poker machines. We’ll teach you how to know what to keep and what to discard. After you’ve gotten good at that we’ll take you through the basics of Texas Hold ‘Em and give you some strategies that will help you win more tournaments.
Some Bookmakers Charge Fees
How do bookies make money? Well, the worst ones charge you for the privilege of being a customer. However, you should know it is only a small percentage of online bookmakers and casinos who do this. And they are easy to avoid. They charge you fees when you make a deposit, and then they charge you fees again when you make a withdrawal. And they keep all of that money, which is how bookmakers make money.
Fortunately, the number of companies that do this are small and becoming fewer every day. That’s because experienced gamblers know to avoid these sites and stick to the 90% of sites that don’t charge any fees. Before you sign up for any site, make sure they don’t hit you with fees to put in or take out any money.
Bookmakers Make Money On Interest
Another way of how bookmakers make money is on the interest they earn from your money. When you deposit money into a casino, it immediately goes into their bank and starts collecting interest. For as long as your money is in your account, they are making interest on that money. Over thousands of accounts that interest adds up.
Also, have you ever noticed that it generally takes a day for the bookmaker to process your withdrawal requests? That’s another day the bookmaker is making interest off of the money that you have deposited with them. For each account the amount of interest is low but when you consider all of the accounts the money adds up to be quite a bit, and that’s how bookmakers make money.
It’s hard to say exactly how much bookies make per year. Everyone has a slightly different way they plan to make money. That said overall bookmakers make 1% to 3% of all bets made on their site. The rest of the money goes back to the players. Again, this doesn’t seem like a lot of money, but people bet a ton and those percentages end up meaning quite a bit of money to the people who accept your bets. The worse the odds they offer you the more money they make.
This is why they try to push you towards video slot machines that have the highest win potential for them. Given that there are machines that deliver 4% of the money bet straight to the casinos you can imagine how happy that makes them. But it’s impossible to say exactly how much bookies make per year.
Additional Bookmaker Revenues – Ad Clicks
If you’ve ever been to an online bookmaker site you’ve probably noticed a ton of ads. There is a reason for this. It’s one of the ways that bookmaker sites make money. Not all of them have ads but enough do where it’s fairly common. They earn a small amount of money every time someone clicks on one of their ads. That money adds up and becomes large amounts if people come to the site often enough. It’s an additional revenue stream that pumps cash directly into the bookmaker’s hands. And you can avoid it simply by not clicking on any of their ads so it’s pretty decent from the player side as well.
Adopting a Strategy to Improve YOUR Odds
Now that we’ve talked about how bookmakers make money, it’s time to delve deeper into the world of gambling. First, is online gambling legal in India? Yes, it is. The company does have to have a license. Since that’s most of the casinos that operate online in India, you should have no problem finding one.
Since if you’ve asked that question you are new to online gambling, we can show you which bookmaker is the best for beginners in India. We’ll take you through what they have to offer beginners that the other bookmakers don’t, which will be of interest now that you know how bookmakers make money.
Conclusion – Small Margins Add Up to a Lot of Fun
How bookmakers make money isn’t that confusing. The way online bookmakers and online casinos are set up they are guaranteed to make money. Except for charging fees to make withdrawals and deposits, there is nothing fishy about it. It’s all about tilting the odds in their favor so that they receive a small percentage of what you gamble. That percentage from each player is small but over time it adds up.
It’s really like any other business and when run correctly, there is nothing wrong with it. So, now that you’re an expert on how bookmakers make money, feel free to gamble without guilt and have yourself a great time!